Trivago stock target raised to $5.50 by Susquehanna

On Monday, Susquehanna maintained a Neutral rating on trivago N.V. (NASDAQ: NASDAQ:TRVG) but raised the price target from $3.50 to $5.50. The firm’s decision follows trivago’s updated financial outlook for fiscal year 2025, which now anticipates mid-teens year-over-year revenue growth, an increase from the previous high-single-digits estimate. This updated outlook surpasses both Susquehanna’s and consensus expectations, which were set at 7% growth. The market has responded positively to trivago’s prospects, with the stock delivering an impressive 26.21% return over the past week and 138.53% year-to-date, according to InvestingPro data.

The company’s management has also shed light on current quarter-to-date trends, revealing double-digit growth across all three of trivago’s reportable segments in the early weeks of April. This performance is expected to contribute to a continued growth trajectory. Additionally, trivago plans to sustain its investment in brand marketing as a strategy to drive further long-term growth. With a market capitalization of $366 million and strong liquidity position (current ratio of 3.21), InvestingPro analysis suggests the company has sufficient resources to support its growth initiatives.

In terms of profitability, trivago has revised its forecast for fiscal year 2025, now expecting positive EBITDA compared to the previous breakeven projection. The anticipated EBITDA is projected to align with the roughly €10 million achieved in 2024, which is higher than Susquehanna’s €7 million estimate and the consensus of €6 million. The company foresees a similar pattern for EBITDA in 2025 as experienced in 2024, with negative figures in the first and second quarters, followed by positive results in the second half of the year. Despite current losses, InvestingPro analysts project the company will return to profitability this year, with an EPS forecast of $0.06 for FY2025.

Finally, trivago announced its intention to execute a call option to acquire the remaining 70% of Holisto, an AI-driven hotel search platform. While the acquisition is not included in the fiscal year 2025 guidance as the deal has not been finalized, management anticipates that Holisto will positively contribute to trivago’s top-line revenue without adversely affecting the bottom line. Based on current trading levels, InvestingPro’s Fair Value analysis indicates the stock is slightly overvalued, though investors should note the company maintains a healthy balance sheet with more cash than debt.

In other recent news, trivago N.V. reported strong financial results, including a return to revenue growth and EBITDA that surpassed market expectations. Mizuho (NYSE:MFG) Securities responded by raising its price target for trivago from $2.50 to $3.50, maintaining an Outperform rating. The firm highlighted improved traffic quality and user experience as key factors in trivago’s positive performance. Additionally, B.Riley upgraded trivago’s stock rating from Neutral to Buy and increased the price target to $5.50, citing effective brand marketing investments and a promising business outlook.

In leadership changes, trivago appointed Dr. Wolf Schmuhl as the new Chief Financial Officer, effective June 1, 2025. Dr. Schmuhl, who previously led Corporate Finance & Development at trivago, aims to enhance investor confidence and maximize shareholder value. CEO Johannes Thomas praised Dr. Schmuhl’s financial expertise and leadership abilities, while acknowledging outgoing CFO Robin Harries for his contributions. These developments come as trivago continues to refine its advertising strategy and business model, with a focus on cost-effective travel options.

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